The Tax Factor was created to educate individuals and small-business owners about taxes. Let’s face it, nothing in life is guaranteed except death and taxes. Okay, maybe that sounded pretty depressing but the goal of this blog is to help you find the information to learn how to make taxes work for you. Taxes can be extremely complicated but knowing about deductions and credits can save you thousands of dollars per year.

Jun 20, 2012

Change Is Gonna Come: Online Taxes

I hope you saved your lunch money because a change gonna come with Amazon and other online retailers.

Amazon taxes are not new taxes. They merely address who is
responsible for collecting tax that’s always been due on tangible personal
property sales. Most states–45–have sales tax. If you buy online and have items
shipped into one of those states you are liable for use tax, the mirror image
of sales tax.

Since use tax is tough to collect, the battle is over
getting online merchants to collect it. Soon we’ll all be paying it. In
California, Amazon’s compromise exempts online retailers from collecting California
sales or use tax until September 15, 2012 if the feds do not pass a federal
online tax measure in the meantime.

Other Amazon agreements include Texas, July 2012; Virginia,
September 2013; Indiana, January 2014; Nevada, January 2014; Tennessee, January
2014; and South Carolina, January 2016. Meanwhile, three federal bills are
pending.

The Main Street Fairness Act would impose
national tax standards but allow states abiding by the Streamlined Sales and
Use Tax Agreement to force Internet sellers to collect tax. Other bills include
the Marketplace Fairness Act and the Marketplace Equity Act.

Put in simplier words: Buying goods on the internet is about to get a whole lot of higher!!!

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About Me

As a federally authorized Enrolled Agent and owner and CEO of the Brooklyn-based J.S. Tax Corporation, Jamaal Solomon provides tax services, business consulting, and IRS problem resolution. Delivering expert service, with his mission to “Take the fear out of taxes” for his clients, Jamaal has prepared federal and multi-state tax returns for individuals, partnerships, not-for-profit organizations, and corporations; has helped numerous tax-exempt organizations with their 501 (c)(3) applications; and has fielded a broad range of client and governmental inquiries on specific returns.
Licensed as an Enrolled Agent since 2007, Jamaal is empowered by the U.S. Department of the Treasury to represent taxpayers before all administrative levels of the IRS for audits, collections, and appeals. As part of the Enrolled Agent program, Jamaal completes an average of 24 hours of continuing professional education each year. He earned his MS in Taxation from CUNY Baruch in 2009 and a BS in Business Management from SUNY Stony Brook in 2002.